The Broken problem - I wish I had a solution

What happened to our money?

Well its simple really, we (yes you and me and banks and the government) ran up a huge debt and now we have to pay it back. The problem is how. Well, we have to get back to a properly balanced economy.

Hoping that the banking bailout will reflate the economy and create more phantasy prosperity is dreaming. Re-capitalising the banks has not worked, they have taken the money and inflated their assets to the benefit of shareholders. But they have not increased investment in industry. What would you expect them to do?

Banks

Banks don't loan money they have, they use money deposited as a basis for creating money they don't have, as credit. This is the source of our overheated economy, which was expanding regardless of the real wealth we generate, creating money seemingly from nothing but really from our future, which then enters the economy as debt owed back to bankers and corporations.

Industry

We need to forget the banks and concentrate on asking why our industry has been smashed, why our pensions have been smashed, why 52% of GDP is from the state, why there is very little proper wealth creation? British manufacturing shrank from 20.9 per cent of the UK’s GDP in 1997 to 13.6 per cent in 2005, since then it has shrunk even further.

We cannot increase taxes and spend more money on welfare, this will make the problem worse.

We have to go back to earning our living. We have to build industry.

Broken?

Broken Britain is all around us.

- Politics and Banking. Broken.
- Religion. Broken
- The police. Broken
- Local government. Very broken
- Attitudes to the old,young, ill and poor. Broken.
- Government itself. Broken
- Tax system. Broken.

The Social Contract - work hard, obey the law and a decent life will be available. Broken